“We provide solutions to our
clients—independent broker/dealers [B/Ds], hedge funds and registered
investment advisers—so they can serve the end-consumer,” DeCicco said. Pershing’s
front end allows advisers to see their entire book of business, plus it offers
model portfolios, a turn-key training program and fiduciary support, he said.
Additionally, in November, Pershing will be rolling out a retirement plan
network that will offer a suite of solutions to help advisers, B/Ds and RIAs
grow their business.

LPL Financial is the largest independent B/D
in the country and has 70 individuals dedicated to retirement plans who work
with 1,500 advisers, said Chairman and CEO Mark Casady. These retirement plan
advisers support 40,000 plans with $110 billion in assets. Additionally, LPL
works with another 2,500 financial advisers managing $390 billion in assets.

LPL retains 97% of its assets, “which tells
me our clients are happy,” Casady said, adding that LPL has been attracting $20
billion in new assets every year. LPL has also become an adviser “recruiting
machine,” having remained the market leader for recruiting advisers in the past
four years, he said.

Casady attributes LPL’s tremendous success in
attracting advisers with its “expertise in plan design, investment selection, automated
rollovers and employee education,” in addition to a “range of technology
solutions” that make advisers more efficient.

The biggest challenges Casady sees for
advisers are threefold: first, fees and running an efficient practice; second,
regulatory issues; and third, better wealth outcomes. LPL is able to help
advisers with these challenges through its thought leadership and the 70
staffers dedicated to retirement plans, he said.

DeCicco noted that many advisers feel
threatened by “robo-advisers,” yet technology can complement their business. He
also pointed out that there will be $59 trillion of wealth transferred to
younger generations by 2040. “Don’t just get to know the patriarch, but [get to
know] their heirs,” he said. “[Generations] X and Y do want advisers’ help, but
they want different interaction.”

Advisers’ growing willingness to offer
investment advice is due to the fact that “investing is not getting any less
complex,” DeCicco said. “People need help with investment decisions, which is
why we offer model portfolios.”

Casady added: “If you look at outcomes, we
all know that there is an epidemic of savings and investment advice in this
country.” The best way to address this problem? Look at the needs of each
participant, then help them get to better outcomes. “We have invested with
Morningstar to create in-plan advice,” he said. “Financial Engines has
commercialized in-plan advice—with a profit margin.”